Small Cheese

How credit card helping you to manage your cashflow

With the fast developing of technology nowadays, we can do fund transfer via internet banking, contact friend or family using mini computer (Mobile Phone), and buying thing using credit card, therefore people around us at least will have 1 credit card on hand.

But, Did you know how to utilize the credit card to help you manage your money? Many people declare as bankruptcy due to this useful card. Actually, if you know how to use this card, it’s really convenient to all cardholder. Let me show you example.

Let’s assume card cut-off date is on 13th every month, and payment due date is on 2nd next month.

For those who need to spend more on their monthly expenses like pay bills, shopping and what if we unfortunately signed/pay a $5000 transaction on 12th and you should know that within a short period which is 20 days later the statement will be due, then you may headache to settle that statement if your salary only credited to you on 3th. How do we ignore this financial problem? Solution is very simple, if that $5000 transaction can hold until 14th of the month then the problem will automatically solved. Why? look at the cart below

Mar                                  |Apr                        |May
1 2 3 4 5…….13 14………….|1 2 3 4 5………………|1 2 3 4 ………………….

If you swipe the transaction on 13th of Mar then you need to settle it on 2nd of Apr, meaning to say you just have 20 days to settle it, but if your transaction is on 14th of Mar then the payment will due on 2nd of May, you totally have extra 20 days to settle it which is total 40 days.

This solution is only help you to make your cash more flexible,thing may serve you better if you know how to utilize it with correct way and use it smarter!!!

I always spend my large amount of transaction on the next day of the card cut-off day, so that it gives me sufficient of time and increase my cash on hand for longer time.


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